SDRC Acquires Enterprise Software Products, Inc.

15 September 1999

SDRC Acquires Enterprise Software Products, Inc.; SDRC Expands the Scalability of I-DEAS CAE Software Solutions

    CINCINNATI--Sept. 14, 1999--SDRC , a leading global supplier of enterprise product development solutions and developer of I-DEAS(R) and Metaphase(R) Enterprise(TM) product data management (PDM) software, today announced that it has acquired Enterprise Software Products, Inc. (ESP), of Exton, Pennsylvania. ESP is the developer of FEMAP(R), a Windows-native, geometry-neutral, finite element modeling software product with over 20,000 commercial CAE users worldwide.
    SDRC acquired all the stock of ESP in a cash transaction to be accounted for as a purchase. The company expects to record a one-time non-cash charge against earnings during the current quarter related to the write-off of in-process research and development. SDRC expects the acquisition to be accretive to earnings thereafter.
    "We are pleased to extend the scalability of SDRC's CAE solutions offerings through the acquisition of ESP," said Bill Weyand, chairman, president and CEO of SDRC. "This acquisition provides us with a platform to deliver CAE solutions to those customers who prefer a CAD-neutral, Windows/NT native FE modeling environment at an attractive entry price. FEMAP will complement our expanded internal R&D investment in I-DEAS that continues to deliver increased value to our current integrated CAD/CAE users. Appropriate use of CAE applications is becoming increasingly important to our customers as more emphasis is being placed on delivering innovative products to market earlier. Our newly expanded CAE product offerings, when combined with our pending acquisition of the SLATE technology from TD Technologies, Inc., and our MetaVPDM(TM) product will form the basis of a comprehensive systems engineering suite of software. By combining the product offerings from SDRC and ESP, we will be able to provide the most scalable set of CAE solutions in the industry for both digital engineering and systems engineering."
    "We couldn't have found a better partner to help us continue to grow and support our direct FEMAP customers and our OEM business partners than SDRC," commented George Rudy, founder of ESP. "SDRC has a strong reputation in the CAE market, a leadership position in the automotive, aerospace and consumer electronics industries, a focus on technology and commitment to customer support, which all contributed significantly to our decision to move forward with SDRC." Rudy continued, "Customers of both CAE product lines will benefit from planned deployment of shared technologies, and we expect to address new customer groups in the future with totally new, next generation products."
    ESP will operate as a business unit within SDRC's CAE Products Group, maintaining its identity, products, distribution channels and OEM relationships. All of the current employees of ESP have been retained by SDRC as part of the transaction. The SDRC FEMAP business will continue to be based in Exton, Pennsylvania.

    About Enterprise Software Products, Inc.

    Enterprise Software Products, Inc. (http://www.femap.com) develops, markets, and supports the FEMAP product line of analysis modeling software. FEMAP is a powerful and easy to use software for computer aided engineering (CAE) that helps organizations simulate product and process performance and improve time to market. Leading organizations including The Boeing Company, Lockheed Martin, NASA, and Mitsubishi rely on FEMAP to integrate multiple analysis technologies in a single modeling and visualization environment. ESP also has a very successful OEM program, partnering with leaders in the field including MSC.Software Corporation (MSC; NYSE:MNS), ANSYS, Inc. , the American Bureau of Shipping and CSAR Corporation.

    About SDRC

    SDRC (Structural Dynamics Research Corporation) is one of the world's leading providers of enterprise product development solutions with its suite of mechanical design automation software and product data management software. The Company's products, coupled with engineering and consulting services, help manufacturers optimize product development early in the design process, enabling them to reduce cost and cycle time while significantly improving quality and time to market. SDRC provides the award-winning I-DEAS(R) product suite of integrated CAD/CAM/CAE software, and the market-leading PDM software, Metaphase(R) Enterprise(TM), which is developed, marketed and supported by SDRC's Metaphase Technology Division. SDRC employs more than 2,500 people worldwide, with 77 offices in 18 countries throughout North America, Europe, and Asia/Pacific.

    Note to Editors: SDRC, Metaphase, I-DEAS and FEMAP are registered trademarks, and Metaphase Enterprise and MetaVPDM are trademarks of Structural Dynamics Research Corporation. All other trademarks or registered trademarks belong to their respective holders.